Why Bitcoin Can’t Be Money

Everyone is talking about bitcoin, even people who otherwise know little about investing. That’s probably a bad sign for bitcoin.
Recently, I had a conversation with my 89-year-old father. He likes reading newspapers, so this year I got him a Wall Street Journal subscription. Now he’s up on the financial news.
A few weeks ago, he asked the big question: ‘What is bitcoin?’
I told him what I knew: Bitcoin is a digital currency, designed to be scarce, anonymous, and secure, that it’s price has gone vertical, that some people think it will one day replace dollars.
He was with me until that last part. A private, digital-only currency didn’t make sense to him.
I pondered that conversation driving home… and I think he was right. Bitcoin may be useful and valuable, but it won’t replace fiat currencies anytime soon.

This post was published at Mauldin Economics on DECEMBER 12, 2017.